Kategorie: Crypto Markets

The crypto lending arm of Genesis Global Trading, which prices itself as the premier institutional digital asset financial services firm, has temporarily suspended the redemption and issuance of new loans.

Genesis announced the developments through a tweet saying:

“We recognize how challenging this past week has been due to the impact of the FTX news. At Genesis we are entirely focused on doing everything we can to serve our clients and navigate this difficult market environment.”

The lending unit, which is known as Genesis Global Capital, had $2.8 billion in active loans according to its 2022 Q3 report.

Impact on Genesis Trading

Genesis Trading, which is Genesis Global Capital’s dealer/broker, is capitalized independently and operates separate from the lending unit.

In a follow up tweet, Genesis said:

“We would like to emphasize that Genesis Global Trading, our broker/dealer that holds our BitLicense, is independently capitalized and operated – and separate from all other Genesis entities.”

It further emphasized that:

“Genesis’s spot and derivatives trading and custody businesses remain fully operational. We continue to support our clients who rely on us during volatile market conditions to manage their risk and execute on their business strategies.”

Taking steps to protect customers amid the FTX crisis

According to Genesis, the default of a loan issued to Three Arrows Capital negatively impacted the “liquidity and duration profiles’ on their lending entity and since then they have been “de-risking the book and shoring up our liquidity profile and the quality of our collateral.”

But there have been abnormal withdrawals exceeding the lending unit’s liquidity due to the market turmoil caused by the FTX crisis thus necessitating the temporary suspension of redemption and new loan origination in the lending business.

Genesis has also said that they are exploring best solutions for the lending business including sourcing new liquidity.

The post Genesis’ $2.8B crypto lending unit halts withdrawals appeared first on CoinJournal.

According to a recently released monthly outlook by Coinbase, the crypto market could be in for a longer winter than previously anticipated all because of the FTX crisis. Coinbase’s report support what was highlighted in our earlier news coverage, showing the crypto market could suffer more because there were many counterparties that had interacted or lent funds to either Alameda or FTX.

According to Coinbase’s report, the FTX crisis has made investors lose confidence in crypto platforms and also created a liquidity crisis within the crypto market that could easily extend until the end of 2023. The implosion of the world’s third-largest cryptocurrency exchange has triggered a fallout in the crypto ecosystem.

Funds stuck on FTX after it filed for bankruptcy

Many institutional and individual investors who had cashed in on FTX have their funds stuck on the exchange after it filed for bankruptcy on November 11. This in a way has caused fear among investors and buyers and thus deterring them from the cryptocurrency ecosystem.

The FTX bankruptcy proceedings may have significant legal complications and may also limit the probability of contagion as the courts look for a safe outcome.

With the whole drama around FTX having upset what was otherwise an emerging positive comeback since the Terra Luna collapse, the FTX bankruptcy will be closely watched although a lot within the crypto space depends on the path of US Federal Reserve interest rates.

Already bid-ask spreads on most crypto platforms have widened since market makers who used FTX as a liquidity pool feel less confident transacting in it.

In the report, Coinbase says:

“We believe poor liquidity conditions may last through at least the end of the year. Stablecoin dominance (see chart 1) has risen to a very high 18% of the total crypto market cap, which has itself fallen from ~$1T at the end of October to ~$800B as of November 12.”

Market volatility

Besides lack of confidence among investors and liquidity crisis, the crypto market is also witnessing very high volatility levels considering the amounts of withdrawals being witnessed across crypto platforms due to fear.

For example following the increased Bitcoin outflows from exchanges, Bitcoin volatility has increased to 66% which is close to what was witnessed at the end of June after the Celsius and Three Arrow Capital crisis.

The majority of cryptocurrencies including Ethereum (ETH) and Bitcoin (BTC) have already given up their previous gains.

Conclusion

In conclusion, Coinbase finds that the market will take time to recover from the current situation.

In the report, the exchange notes:

“Remediation will take time, and very likely this could extend crypto winter by several more months, perhaps through the end of 2023 in our view. Truthfully, it was going to be a challenging market regardless, as traditional risk assets still need to reckon with the high likelihood of a US recession in 1H23.”

In addition to the tough condition within the crypto space, there is also the policy tightening in the US and a stronger dollar that has increasingly made it difficult for investors to hold long positions in the crypto market and other high-risk markets.

The post Crypto winter could extend to end of 2023 due to the FTX crisis, report shows appeared first on CoinJournal.

Mars Token (MRST) has surpassed $100k in daily trading volume barely a week after it launched on the OKX exchange.

MRST, the native token of the Mars Metaverse, has reached a daily trading volume of $117k. This is according to data obtained from Coingecko.

The MRST token has numerous utilities within the Mars Metaverse. The token can be used to purchase Colonies and build houses and other commercial properties in the metaverse.

Users can also earn rewards with MRST in the Mars Metaverse and host events in their buildings and houses, and get paid in MRST. When third-party games launch on the Mars Metaverse, MRST will be the native token of these games. 

Since it was launched a few days ago, MRST has set a new all-time high price of $0.119817. The all-time high price was achieved six days ago, on November 9th. 

MRST’s all-time low price currently stands at $0.04796314. At press time, MRST is trading at $0.053235, down by 54% from the all-time high it achieved a few days ago. MRST has bounced back from yesterday’s poor performance and is now up by 13% from its all-time low price. 

At press time, MRST is trading positively against both the US Dollar and Bitcoin. The MRST/USDT pair is up by nearly 2% in the last 24 hours, while MRST is up by 0.6% against Bitcoin during that period. 

One of the most impressive feats of MRST is that it has been consistently recording a daily trading volume of more than $100k. The daily trading volume peaked at over $3 million when it launched a week ago.

However, the daily trading volume had declined over the past few days as the price of the token also dipped. Despite the decrease in MRST’s trading volume over the past few days, it had maintained it above $100k.

The post Mars Token maintains a daily trading volume of $117k a few days after its launch appeared first on CoinJournal.

FTX collapsed last week, and that has left many investors scrambling for alternatives. eToro provides a reliable alternative for people looking to use secure trading platforms.

FTX, one of the leading crypto exchanges in the world, collapsed last week. By the end of the week, the exchange had filed for bankruptcy. 

The cryptocurrency exchange was reportedly using customer funds for its business purposes. With the collapse of the FTX exchange, many investors are looking for alternatives where their funds and assets can be secure.

Why eToro is a reliable FTX alternative

eToro has been in the financial space since 2007, before the emergence of Bitcoin. The company is known for providing investors access to a wide range of financial markets, including forex and stocks.

User funds are safe on eToro thanks to some of its features. For starters, eToro is a regulated, multi-asset broker that has been in business since 2007. The brokerage platform is regulated all over the world, by some of the leading regulators, including the FCA, CySEC, ASIC, and more.

FTX’s balance sheet showed that the exchange was diverting some customer funds to its sister company, Alameda Research. 

eToro assures its customers that this is not the case when they trade with them. The brokerage platform’s underlying business remains healthy and profitable, and its balance sheet is strong.

FTX’s downfall began after its FTT token lost more than 90% of its value within a few days. The company’s holdings drastically reduced during that period. 

eToro doesn’t engage in crypto lending

eToro said it has never issued its own token and does not engage in crypto lending. The lack of an eToro token means that customers don’t have to worry about the token’s price dipping. eToro also doesn’t engage in cryptocurrency lending, unlike FTX.

Finally, eToro assured its users that their funds and assets are segregated and reconciled on a daily basis to ensure safety and liquidity and comply with its regulatory obligations.

eToro is a leading brokerage company that allows people to invest in a wide range of financial assets, including cryptocurrencies, stocks, and more.

etoro–>

The post eToro’s properties make it a reliable FTX alternative appeared first on CoinJournal.

• Liquid is an FTX-owned crypto exchange based in Japan and which Sam Bankman-Fried acquired in February this year.

Liquid, a Japan-based cryptocurrency exchange acquired by bankrupt crypto exchange FTX in February this year, has halted all withdrawals and deposits.

The exchange, which announced this via Twitter on Tuesday, said the decision to pause all crypto and fiat withdrawals is down to the ongoing Chapter 11 bankruptcy proceedings involving FTX and about 130 of its affiliate companies.

Fiat and crypto withdrawals have been suspended on Liquid Global in compliance with the requirements of voluntary Chapter 11 proceedings in the United States.

We will provide updates when available.

— Liquid Global Official (@Liquid_Global) November 15, 2022

Not long after, the exchange posted an update advising users not to also deposit their crypto or fiat to the platform.

“Fiat and crypto withdrawals have been suspended on Liquid Global in compliance with the requirements of voluntary Chapter 11 proceedings in the United States. Until further notice we would suggest to not deposit either FIAT or Crypto. We will provide updates when available,” Liquid Global tweeted on 15 November.

According to the Liquid Global team, the Chapter 11 filing by FTX impacts Quoine Pte. Ltd, the company that operated the Liquid Exchange and which FTX acquired earlier in the year.  The exchange says the halt on all withdrawals is not security-related.

Liquid temporarily suspended both fiat and crypto withdrawals on 12 November, soon after FTX shocked the crypto world with a Chapter 11 filing. The halt also came after FTX announced it had been hacked, with the security breach seeing millions of dollars in crypto assets stolen.

The Japanese exchange however temporarily resumed crypto withdrawal services after what it said had been “thorough security checks of internal systems.” 

The platform had also noted afterwards that its customer funds had not been impacted by FTX’s insolvency.

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